SWEDEN: Volvo to invest 422 mln euros in Belgian operations
Volvo said it had selected the city of Ghent for the development and construction of its new mid-range models planned to succeed the S/V40 model.
The investment will create 1,800 new jobs to increase production capacity to 325,000 cars a year, compared with its current output of 160,000 cars, the company said at a press conference.
It also will invest one billion kronor in its unit in Torslanda in western Sweden, to boost capacity to 230,000 units from a current 170,000.
In Germany on Monday, Opel - the German arm of US car giant General Motors Corp. - said it was able to narrow its operating losses in 1999 and aimed to return to profit this year as restructuring measures begin to bear fruit.
Opel said in a statement that it sustained an operating loss of 225 million (115 million euros, 110 million dollars) last year, compared with a loss of 344 million marks a year earlier.
After tax, however, Opel posted a net loss of 81 million marks in 1999, compared with net profit of 576 million marks a year earlier, the statement said.
Finance chief Hennig Klages predicted that Opel would be able to return to profit this year.